Professional Documents
Culture Documents
truefriendlion@gmail.com
The
present value of growth opportunities (PVGO) is equal to
I) The difference between a stock's price and its no-growth value per share
II) The stock's price
III) Zero if its return on equity equals the discount rate
IV) The net present value of favorable investment opportunities
Total question=23
MCQs=18
Subjective= 5 questions
MCQS were easy and from handout. Prepare first 14 lecture very well for good marks.
A statement was given about like suppose you have deposited 10,000 in bank. What will be money after 5 year in
your hand? 3 Marks.
1
Why the require rate of return is different from the preferred stock and common stock? Briefly explain. (Very
Important topic) 3 Marks.
Values of four year was given we have to calculate NPV for them . also tell is this acceptable? 5 Marks.
Two statement were given in first we have to tell the value of growth rate ”g” if it is not calculated then find the
second value of “g”? 5 Marks.
Mgt201 paPer
Total 23 Questions
5 QuesTions
1. Briefly explain what call provision is and in which case companies use this option. 3 Marks
2
3. What are different types of bonds? (Give any five types) 5 Marks
ReQuireD:
Required: calculate the cash flow of the bank every month as well as the present value of this option.